Exploring the Dynamics of Non-Performing Assets in the Indian Banking Sector: Policy and Managerial Perspectives

The persistence of non-performing assets (NPAs) in the Indian banking sector represents a critical challenge with profound implications for financial stability, credit availability, and economic growth. This study explores the dynamics of NPAs by examining their trends, determinants, and the efficacy of policy and managerial interventions aimed at mitigating asset quality deterioration. Utilizing secondary data from public and private sector banks over the past decade, the research identifies sector-specific vulnerabilities, evaluates the impact of regulatory frameworks such as the Insolvency and Bankruptcy Code (IBC), and highlights managerial practices that influence loan recovery and portfolio quality. The findings underscore the necessity for robust credit appraisal mechanisms, strategic risk management, and technological integration in monitoring and resolving NPAs. By offering actionable insights for policymakers and banking managers, the study contributes to a comprehensive understanding of NPA mitigation strategies, promoting sustainable banking operations and economic resilience in emerging markets. Keywords: Non-Performing Assets, Banking Sector, Asset Quality, Risk Management, Policy Intervention